SOUTH ASIA ENERGY CONTEXT:Sub-region has over 1.3 billion (21 % of the total world population);Wide variation in abundant resource endowments in form of hydropower, coal, natural gas and other renewable energy resources;Dominance of single fuel in energy mix.CROSS BORDER ENERGY TRADE Opportunities:Energy resource diversification and energy security;Sharing of low cost energy resources;Optimal utilization of resources & transmission networks;Economic opportunities for energy exporting countries;Enhanced opportunities for climate change mitigation.Challenges:Lack of funds (inadequate internal financial resources) & huge investment;Constraints in transmission corridor;Absence of competitive power market (Only India -IEX & PEX);Lack of harmonious legal & regulatory framework (essential criterion for cross border trade!);Limited institutional and manpower capacity.
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